Correlating Customer Satisfaction and Customer Loyalty: The Case of International Tourists in Cretan Resort Hotels

Abstract

Customer satisfaction and customer loyalty are considered as a confirmation of remarkable service provision towards the customers. The formation of both constructs is viewed as a vital element which leads to the reinforcement of competitive advantage for the hotels. Various academic viewpoints are available concerning the constructs of customer satisfaction and loyalty; nevertheless, most of them indicate an opposition towards their correlation. The aim of this research was to investigate the factors that reinforce the satisfaction and loyalty levels of resort tourists and identify whether or not the two constructs are interrelated. A quantitative research methodology was applied, with the use of close-ended paper questionnaires, which were administered to international tourists staying in resort hotels in the Municipality of Hersonissos, one of the most popular tourist destinations in northern Crete. Findings confirmed a positive correlation between customer satisfaction and customer loyalty. Data also showed that food and beverage quality, location and price are considered as the most significant factors that enhance satisfaction levels, whereas emotional experiences, loyalty programs, customer service quality, and customer satisfaction were identified to have a significant impact on the formation of customer loyalty.

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